Deutsche Telekom-owned ISP T-Online International has announced it is performing better than expected in its second half and has narrowed full-year loss projections accordingly.
The company now expects losses for 2001 to come in below E200 million, around 13% better than previously predicted.
As revealed earlier this month [WAMN: 07-Nov-01], Q3 EBITDA (earnings before interest, taxes, depreciation and amortization) losses totalled E34.8m – better than Q2’s E57m and way ahead of analysts expectations – on sales of E270m.
However, in its German operations T-Online entered the black for the first time, managing an EBITDA profit of E900,000 despite losing E7.7m on the first-time consolidation of subsidiaries T-Info and T-Online Travel.
Most of the group’s losses came from two of its foreign ventures – Club Internet in France and Spanish unit Ya.com – even though this duo supplies only 9% of total sales. Chairman Thomas Holtrop said there would be no more international expansion until T-Online turns a profit.
The ISP now has over 10m subscribers, with about 80% living in Germany.
News source: Handelsblatt (Germany)